Probity issues on waste contracts

By Shepparton News

Mar 31, 2023

Sprung a leak: Probity issues have emerged around waste contracts across the region. Photo by Julie Mercer

Leaking of information regarding Greater Shepparton City Council’s waste contract a month before a recommendation came to council was “highly improper” and “could corrupt the process”, according to experienced waste industry contacts.

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The News has learned from several sources that local contractor Foott Waste heard “on the rumour mill” that it would be successful in winning the Strathbogie waste collection contracts but be unsuccessful in Shepparton.

The News understands the local contractor then received similar information several days before last week’s council meeting.

At the meeting, councillors deferred a decision after officers recommended that national recovery company Cleanaway be awarded the waste collection and recycling component of the seven-and-a-half-year contract, with an option to extend for another seven and a half years.

The contract is part of more than $75 million worth of waste-handling contracts being considered by council.

The green waste collection contract was awarded to Western Composting Technology.

The leaking of highly confidential information about what is council’s largest service contract raises serious concerns about probity of the assessment process, overseen by council infrastructure officers.

Observers experienced in the waste industry have also pointed out that council officers recommended that council award just two contracts, whereas tenderers had the choice of four separate contracts to submit prices on.

“The only way you get four into two is by negotiating with particular tenderers before any recommendation went to council,” an industry source said.

“This is also clearly improper.”

The News was also told by an industry source that the fact that such accurate information was conveyed to Foott Waste “on the rumour mill” suggests discussion occurred between officers at different councils, possibly aiming to parcel out contracts to different tenderers “to stop them grizzling”.

Council response

Greater Shepparton City Council was asked by the News about apparent leaks during the process and breaches of probity, and if it planned to take any action.

It issued the following response:

“Council does not have any knowledge of this information. All information pertaining to the tender has been confidential since the commencement of the tender process and is still a confidential matter as the decision has not been made by council. The public information pertaining to this tender was published in the report presented at the council meeting held on March 21 for council’s consideration and decision.”